The government's proposed budget for the upcoming fiscal year includes a new 0.2% tax on retail sales. This means that for every 1,000 taka spent, 2 taka will be deducted as tax. While the tax amount is small, retailers and small businesses are concerned about the potential impact on prices and their profit margins.
Concerns among small retailers
Small retailers, who often operate on thin profit margins, are worried about the new tax. They argue that the additional 2 taka tax per 1,000 taka spent could force them to increase prices, ultimately passing the cost onto consumers.
Challenges in tax collection
There are also concerns about the practicality of collecting this new tax. With a significant portion of the economy operating informally, ensuring compliance and accurate tax collection could prove challenging.
